Funding Circle Review

Funding Circle is a UK SME lender founded in 2010. It says it has lent £18 billion to over 135,000 UK businesses. Its main product, per its own site, is a business loan of £10,000 to £750,000 over up to 6 years, from 6.9% a year. It also offers shorter-term flexible loans, FlexiPay (a line of credit) and a business credit card. It is not an invoice finance provider; it features on this site because many UK SMEs compare a term loan with invoice finance.

What this page covers

This page covers

Funding Circle SME term loans, published loan size and starting rate, and how a term loan differs from invoice finance

Not covered here

Dedicated invoice finance facilities (see /providers/), general invoice finance education (see /guides/), sector pages (see /industries/)

Key Facts

Primary productSME term loans
Loan size£10k to £750k
TermUp to 6 years
InterestFrom 6.9% a year (upper rate not published)
Founded2010
Lent to date£18bn (UK)
FeesOne-off completion fee
TypeSME lending platform

Where Funding Circle Fits

Funding Circle sits between high-street clearing banks and specialist alternative lenders. They are larger, more brand-recognised, and more scaled than fintech challengers, and lend only to SMEs. Funding Circle says decisions can come in as little as 5 minutes and that it bases them on a wide range of business data.

For invoice finance specifically, Funding Circle does not publish an invoice finance product: its loans are repaid in fixed instalments and are not advances against your invoices. Businesses that want per-invoice advance, ledger-wide funding, or sector-specific invoice finance underwriting will find dedicated providers (Bibby, Close Brothers, Aldermore, or fintech invoice specialists) a better fit.

Pros and Cons

Strengths

  • Strong UK brand recognition and published starting rate (from 6.9% a year)
  • Fast online decisions (as little as 5 minutes, per Funding Circle)
  • Scale: £18bn lent to UK businesses, per Funding Circle
  • Multiple products: term loans, shorter-term loans, FlexiPay, credit card

Limitations

  • Not an invoice finance provider (fixed-term loans, not advances against invoices)
  • A personal guarantee may be required (Funding Circle does not publish when)
  • £750k published maximum rules out larger facilities
  • Less flexibility on rejected applications vs specialist alternatives
  • No sector-specific underwriting depth (construction stage billing, recruitment payroll)

Best For / Less Suitable For

Best for

  • Established UK SMEs wanting a fast fixed-term loan
  • Borrowing needs of £10,000 to £750,000
  • Businesses that prefer fixed-term structure over revolving facilities
  • Tech-comfortable directors who value a digital application

Less suitable for

  • True invoice finance need (use Bibby, Close Brothers, Aldermore or fintech IF specialists)
  • Facilities above £750k (use challenger banks or commercial lenders)
  • Sub-12-month trading or pre-revenue applicants
  • Directors unwilling to give a personal guarantee, if Funding Circle asks for one
  • Construction stage-billing or recruitment payroll-cycle files

How Funding Circle Compares

Vs.Funding Circle wins onOther wins on
iwocaScale, larger fixed-term loans (up to £750k)Faster small-ticket decisions, flexi-loan structure, open-banking-led underwriting
Bibby Financial ServicesSpeed, fixed-term clarity, brand recognitionTrue invoice finance product, sector specialism, larger facility ceiling
AldermoreOnline decisions; open to smaller businesses (Aldermore invoice finance asks for £750,000 turnover)UK banking licence (PRA + FCA dual), confidential invoice discounting, cross-sell to commercial mortgages

Application Path

Apply online via fundingcircle.com; Funding Circle says the application takes about 7 minutes and decisions can come in as little as 5 minutes. After you accept the loan terms you send ID and proof of address and complete any personal guarantee or offer conditions; it says funds are then typically paid out within 48 hours.

Our Verdict

Funding Circle is a strong choice for UK SMEs seeking a fast fixed-term loan of £10k to £750k. Its scale, fast online decisions and product range (term loans, shorter-term loans, FlexiPay) make it a credible alternative to high-street banks for the same applicant profile. They are not the right answer for businesses seeking true invoice finance: dedicated IF providers offer better structure and pricing for that need. A possible personal guarantee and the £750k ceiling are practical limits.

Official site: Funding Circle

Sources

Figures without a link above, including starting service charges, are Market Invoice research estimates: most providers do not publish a rate card and price each facility individually. Checked September 2026.

AP

Adam Parker

Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd

Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.

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Funding Circle FAQ

What does Funding Circle actually do?

Funding Circle is primarily a UK SME term-loan lender. Founded in 2010, it says it has helped over 135,000 UK businesses borrow £18 billion. Its main product, per its own site, is a business loan of £10,000 to £750,000 over up to 6 years, from 6.9% a year, with a one-off completion fee. It also offers shorter-term flexible loans, Growth Guarantee Scheme loans, FlexiPay (a revolving line of credit) and a business credit card. It does not list an invoice finance product on its UK site.

Does Funding Circle offer traditional invoice finance?

No. Its UK site lists business loans, shorter-term flexible loans, FlexiPay, a credit card and asset finance through partners, but no invoice finance or factoring product. A term loan is repaid in fixed instalments; it does not advance money against individual invoices the way Bibby, Close Brothers or Aldermore would. If you want selective or whole-turnover invoice finance, Funding Circle is not the right fit; if a fixed-term loan suits the need better, it may be.

What is Funding Circle's pricing on a term loan?

Funding Circle publishes interest from 6.9% a year on its business loans, plus a one-off completion fee. It does not publish an upper rate or a typical rate; the rate you are offered depends on its assessment of your business, so get a quote. Its Growth Guarantee Scheme loans are published from 13.4% a year.

How quickly does Funding Circle decide?

Funding Circle says applications take about 7 minutes and decisions can come in as little as 5 minutes. Once the loan terms are accepted and the documents (ID, proof of address and any personal guarantee or offer conditions) are returned, it says funds are typically paid out within 48 hours. Timings on complex files are not published.

Does Funding Circle require a personal guarantee?

Sometimes. Funding Circle's application steps say that if a personal guarantee is required it must be completed before the loan is paid out. It does not publish when a guarantee is required, so ask at quote stage.

How does Funding Circle compare to iwoca?

Funding Circle and iwoca both lend to UK SMEs. Funding Circle publishes business loans of £10,000 to £750,000 over up to 6 years; iwoca focuses on open-banking-led flexi-loans and is privately held. iwoca often decides faster on small tickets; Funding Circle is competitive on larger fixed-term facilities. Both will engage with files from 12 months trading. Compare both directly for any UK SME term-loan ask.

Should I use Funding Circle if I want invoice finance specifically?

Probably not, unless your trading position suits a term loan better than an invoice finance facility. For true invoice finance (factoring or discounting), specialists like Bibby, Close Brothers, Aldermore, or fintech invoice finance providers (Hydr, Triver, Accelerated Payments) offer dedicated products with appropriate pricing structures. Funding Circle does not publish an invoice finance product; its loans are repaid in fixed instalments.